Valeo Announces a Plan to Create Subsidiaries for Its Clutches and Friction Materials Activities

    PARIS--March 12, 2002--Valeo (Paris: FR; OTC:VLEEY) today announced a plan to set up two wholly-owned subsidiaries for its clutches and friction materials activities (Transmissions Branch).
    The plan has been submitted to the Central Works Council which will meet on March 20. These industrial activities are currently a part of Valeo, the Group's holding company. The plan aims to regroup the industrial activities (clutches and friction materials) directly exercised by Valeo into two separate subsidiaries, one for clutches and the other for friction materials. The Group's holding activities (accounts consolidation and cash management) would remain within the holding company Valeo.
    The aim of this plan is to align the legal and operational structures, to simplify administration and to provide greater clarity in terms of the industrial activities' results. The two new, wholly-owned subsidiaries will be able to pursue any development and growth opportunities that may arise. As a result of this operation, the financial statements of the Group's holding company will be even more transparent.
    Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 143 plants, 53 R&D centers, 10 distribution centers and employs nearly 70,000 people in 25 countries worldwide (end 2001).
    For more information on the Group and its businesses, consult our website: www.valeo.com